Tesla attains right to use 864,885-square meter land from Shanghai government

Shanghai (Gasgoo)- Tesla and Shanghai Municipal Planning, Land and Resources Administration signed a contract on October 17 saying that the Shanghai government will lease and transfer the right of using state-owned lands to the EV maker, which will make Tesla's Gigafactory in Shanghai's Lingang Area cover an area of over 1200mu (around 864,885 square meters), according to Tesla's official WeChat account.

Shanghai Municipal Planning, Land and Resources Administration said the plot of 864,885 square meters has been transferred at a price of RMB 973 million.

“The Shanghai factory is Tesla's first Gigafactory outside the U.S.. The agreement we signed today is a crucial milestone for us to turn Shanghai factory into Tesla's next cutting-edge and sustainable manufacturing base,” said Robin Ren, Tesla's vice president of worldwide sales.

Tesla signed an investment agreement on pure electric vehicle project with Shanghai Lingang Area Development Administration and Lingang Group on July 10. The American EV maker is planning to build the Gigafactory 3 there, which will be Tesla's wholly-owned subsidiary working on such businesses as vehicle R&D, manufacturing and marketing. Tesla plans to achieve an annual production capacity of 500,000 EVs at the Gigafactory 3, marking the largest foreign-funded manufacturing project in the history of Shanghai.

Shanghai Municipal Government and Tesla had signed a memorandum of understanding (MoU) in the same July. What's more, Tesla (Shanghai) Co., Ltd. and Tesla (Shanghai) Electric Vehicle R&D Innovation Center were also unveiled simultaneously.

According to the MoU, Shanghai will actively prop up Tesla to build a Shanghai-based subsidiary and an electric vehicle R&D innovation center, in order to help develop Shanghai's high-end manufacturing industry and enable the city to be a world-class auto industry center in the future.